Toyota Offers NUMMI Workers $250 Million Severance
Jason Lancaster | Mar 03, 2010 | Comments 24
We’ve been following the closure of NUMMI for a few months now, and it seems that the story is just about done. Earlier today, Toyota announced that they are giving NUMMI workers a $250 million dollar “transition” fund that could be used to pay out bonuses to NUMMI employees, as well as offer career counseling and training.
While it’s obviously not this simple, $250 million divided up amongst 4,500 workers (plus or minus) is about $55k per person. While this severance isn’t tremendous, it’s certainly nothing to sniff at…especially considering Toyota was forced to close NUMMI when GM filed bankruptcy.
Here’s a history of our coverage of the closure of NUMMI:
- When we first heard the rumor, we didn’t think Toyota would close NUMMI
- We were wrong – Toyota closes NUMMI, get ready for a backlash
- Toyota moves production of the Tacoma from NUMMI to San Antonio, alongside the Tundra
- We wondered if California’s anti-business laws and regulations killed NUMMI
- We ridiculed the UAW for picketing Toyota at the San Jose auto show
- We found out 80% of NUMMI workers were angry with the UAW
- We saw a video of UAW local leadership cursing and NUMMI workers
- Despite the well-documented chain of events, we questioned why the UAW doesn’t blame GM for this situation
Finally, we’re left with just one question: will the UAW take a percentage of this final severance package for “representation fees?”
What do you think – did Toyota do right by NUMMI’s workers?
Filed Under: Auto News
Toyota was forced to close NUMMI, by who? They had options. Is this the money they saved negotiating the recalls, you know that 100 million the media was talking about. Were the power steering pumps on the GM’s that where recalled on the one million+ vehicles made here? GM is saying that the outsourced company the made them are partially owned by Toyota. Media was saying GM was proposing recalling the Vibe due to it being but in this plant with some Toyota parts. Does anyone know anything about any of this?
Greg what options? Toyota couldn’t afford to run NUMMI by themselves. You’re asking by who, when it states in the second paragraph last sentence “When GM filed Bankruptcy”. GM left Toyota holding the bag with all the cost. Cobalt is manufactured in Lordstown, Ohio. Actually put together there. Parts are from all over the world. From what I read the electronics are from Japan. Not the power steering pump. Then it doesn’t state Toyota in specific. You want to add something here Greg? The Vibe had the same power steering pump as the Cobalt. While we are at it then Toyota has the same to go at GM for their junk Delco radio’s put in Toyota’s.
Greg – Please don’t reference the “media” when you make your arguments. It cast a shadow on the validity of the facts your presenting.
Greg – Some people believe that a plant can stay open forever, but at some point it was either going to have to close or be significantly re-modeled. Toyota and GM created a company called NUMMI to run the facility, and when GM filed bankruptcy, Toyota had two choices: 1) Take on the obligation of NUMMI all alone, or 2) Close. Considering the higher production costs and Toyota’s over-capacity, closing was the most logical choice. If GM had stuck it out, however, Toyota would have had a partner to share costs with. They did have options, but none of them were very good.
The rumor is that the UAW will keep 40 or so Team Members picked by them to do something at the union hall across the street (2244) for the next two years, probably the 40 or so who go on all the trips! They get the same pay and benefits that are current at NUMMI. The question is who is paying for this?
It comes out of that severance $250 million. Ohh yes your union dues also.
The link of this story was posted by Mickey in reference to the 1+ million GM power steering recall. “GM spokesman Alan Adler said Monday it will take time for the automaker to get 1.3 million new power steering motors from the supplier, JTEKT Corp., and GM will notify car owners when the parts are available”.
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Now as stated on anther post many wonder who is JTEK. In 2002 it was establishment with Toyota Motor Corporation, Denso Corporation, and Toyoda Machine Works, Ltd. of joint venture FAVESS Co., Ltd. for the development and sale of electric power steering. That is off their site.
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So where does it state that Delco makes Toyota’s stereo and that it is owned by GM? There is my verification where is yours?
Jason Said in March 1st, 2010 @7:12 pm
Will – Towards the end almost no GM vehicles. GM’s last major product from NUMMI was the Geo/Chevy Prizm. After that, it was just the Vibe
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So when was the last GEO/Chevy Prizm produced? So if I make if a joint owned manufacture makes 10 cars, we will call the companies A and B. Out of those 10 vehicles ONE is for company A to sell, and NINE are for B to sell how is it fair to split the cost down the middle. So did Toyota assist in putting GM so fair in the hole to file bankruptcy? If they had to pay half of the bills at NUMMI while only getting a tenth of the product that doesn’t seem fair does it? If it does I have a business opportunity for you. We can make 20 of my product and 1 of yours but we split the cost down the middle. That doesn’t even take into account the years in between the GEO failure I mean era and the Vibe. So why is so much expected out of a company (GM) that didn’t get its fair share out of it. If anything the workers and UAW should hold Toyota a little more accountable, BUT GM is also in the picture. Not as much as Toyota though due to the final product output per brand.
Greg who asked who to come into this venture? Rest case.
This was posted march 3rd nummi is renewing it’s 5 year title V operating permit. Would this be for the clean-up of the plant? Thanks
Still waiting Mickey! Are you gonna back up the Delco comment or can you? Its only your credibility on the line or was it just a troll talking? I hate GM but the truth is the truth!
Greg you never answered the question. Who asked who come and do a joint venture? Just as you mention the power steering pump which is half owned by Toyoda. He recently acquired it. So how does he get the whole blame?
Oh I see. Trying to spin it Mickey. Well I don’t care who asked who to enter the Venture. Seems a little to late to even care! But YOU, Mickey, said that there are DELCO stereo’s made GM in Toyota’s and I asked you to prove it. Well apparently you can NOT and are just a troll. Yes a T-R-O-L-L. How does that leather taste? Want some Tobacco?
Recently? How recent? Oh that was in the proof of what I said. So how is this different from NUMMI and GM blame game? Delco Mickey. You said it back it up or chew on that shoe!
Spin? The question remains which you don’t want to answer. No spin on it GM asked and when they filed Bankruptcy they left Toyota with the whole thing. Yes Toyota builds new plants and it’s cheaper to build the vehicles somewhere else than california. You need to get over yourself or seek help. If anyone is carring a chip on his shoulder is you guy.
Another one for you Greg why is it Toyota outsources to the US to build their vehicles, and the Big 3 outsources to Mexico and Canada.
Ok Mickey since you seem to have a really hard time finding the answer Denise did it for you. Delphi Delco Electronics and Toyota teamed up on September 27, 2002. So please tell me how JUNKY those radios are! Those radios are as much Toyota as GM! Mickey I’m not falling for it. You proved my point by just stating how Delco was such a bad product! Apparently you do not know what your talking about! As for spinning the question you did just that and proved anther point! Ever thought or being a reporter or entering politics?? Thanks again!
Greg you’re one mistake is you keep refering to “Toyota” when you want to take out the leather my friend it’s “Toyoda” the man who owns half of it. I know you want to refer the the manufacture to help put them down but it’s a good try. Try again Greg. Apparently it’s a sore subject to you being either part of NUMMI or GM/Delco.
Greg – My memory is that AC Delco was a division of GM up until the late 90’s. I don’t know if it’s fair to say that Delco parts are “GM crap,” mostly because all manufacturers use the same suppliers for many of their parts (Lear, for instance, makes 70% of the world’s automotive interiors…or something like that).
However, having said that, Mickey is certainly entitled to his opinions based on his experience…just as you are entitled to question them.
To no one in particular: I welcome open debate – but let’s shoot for being respectful to each other (including myself…I get carried away sometimes).
Greg – In response to your comments about the 90 – 10 nature of the costs: I don’t think that Toyota and GM split operating costs down the middle. However, the company itself was half-and-half. To use your example, you and I own equal parts of the factory, but people want to buy the cars I make more than they want yours, so I use 90% of the capacity. I am assuming that Toyota paid the lion’s share of the costs. I suppose it’s possible that Toyota could have kept the plant open and taken on 100% of the liability, but they didn’t want to. California’s labor and environmental laws, their flirtation with cap & trade regs, and their budget crunch make the prospect of doing business in California a little scary…which is probably why GM abandoned their half of the plant. If GM decided it wasn’t worth keeping, why is it so bad for Toyota to come to the same conclusion?
John – That’s insane! How can the UAW keep 40 people on to help operate a plant that’s shut down?
molly29 – My guess is that it’s a legal convenience. It’s probably cheaper to say the plant is “operational” than it is to close and officially begin any sort of environmental clean-up. A lot of mining companies do this…they produce a tiny amount of material every year from mines that have been closed for decades so they can say the mines are “active.” That way, they don’t have to pay for reclamation.
if 80% of the workers are really mad they would no longer be a union plant. toyota has union busters and it only takes 65 % vote its more like 80% of toyota is mad at the union get a union job before you quote stupidity.
roger conn – I’ve made this point on another post, but here it is again: Once a union is in place, it’s very rare that it’s “voted out.” Unions often guarantee pensions and/or provide benefits, so workers don’t chose to “vote them out” because they could lose something they’ve worked hard for. The idea that a union plant could simply be non-union by taking a vote is foolish – it almost never happens in the real world.
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